RFP Document and Statement of Work. For REQUEST FOR PROPOSALS (RFP) : AUDIT SERVICES

Transcription

1 RFP Document and Statement of Work For REQUEST FOR PROPOSALS (RFP) : AUDIT SERVICES BY THE HOUSING AUTHORITY OF THE COUNTY OF SAN JOAQUIN BUSINESS OFFICE 421 SOUTH ELDORADO STREET, SUITE B STOCKTON, CA RFP Issued: March 5, 2013 Proposal Deadline: March 25, 2013 Page 1 of 20

2 Table of Contents Section Description Page 1.0 HACSJ S Reservation of Rights Statement of Work & Technical Specifications Proposal Submittal Proposal Evaluation Contract Award HACSJ Property Listing (Informational Only) 20 INTRODUCTION TO THE HACSJ The Housing Authority of the County of San Joaquin (HACSJ) is a public entity that was formed in 1942 to provide federally subsidized housing and housing assistance to low-income families, within San Joaquin County. It is governed by a seven-person board of commissioners and is subject to the requirements of Title 24 of the Code of Federal Regulations (CFR). Currently, the HACSJ owns and/or manages: (a) four (4) Housing Developments totaling 1075 dwelling units; (b) two (2) senior apartment complexes, totaling 160 units; (c) three (3) migrant centers housing 294 families; (d) two (2) apartment complexes totaling 17 units (e) FHA funded agricultural family housing, totaling 31 units and f) administers a total of 4817 Housing Choice vouchers for a total of 6,394 units. The HACSJ currently has approximately 100 employees. In keeping with its mandate to provide efficient and effective services, the HACSJ is now soliciting proposals from qualified, licensed and insured entities to provide the above noted services to the HACSJ. All proposals submitted in response to this solicitation must conform to all of the requirements and specifications outlined within this document in its entirety. RFP INFORMATION AT A GLANCE HACSJ CONTACT PERSON HOW TO OBTAIN RFP DOCUMENTS PRE-PROPOSAL CONFERENCE HOW TO RESPOND TO THIS RFP PROPOSAL DEADLINE ANTICIPATED APPROVAL BY HACSJ BOARD OF COMMISSIONERS Brad Diemer: bdiemer@hacsj.com (All inquiries shall be in writing) 1. Access 2. Click on the Vendors/Contractors tab at the top. 3. Scroll down to see the RFP documents for this solicitation and print them out or save them to your computer. None is planned for this RFP. As detailed within Section 3.0 of this document. 2:00 P.M. Local Time, 3/25/2013, at the HACSJ Business Office located at 421 S. El Dorado Street, Suite B, Stockton, CA To be determined following pricing negotiations and funding approval, but expected to take place at the public meeting scheduled for 4/18/2013. Page 2 of 20

3 1.0 HACSJ'S RESERVATION OF RIGHTS: 1.1 The HACSJ reserves the right to reject any or all proposals, to waive any informalities in the RFP process, or to terminate the RFP process at any time if deemed by the HACSJ to be in its best interests. 1.2 The HACSJ reserves the right not to award a contract pursuant to this RFP. 1.3 The HACSJ reserves the right to terminate a contract awarded pursuant to this RFP, at any time for its convenience upon 10 days written notice to the successful proposer(s). 1.4 The HACSJ reserves the right to determine the days, hours and locations that the successful proposer(s) shall provide the services called for in this RFP. 1.5 The HACSJ reserves the right to retain all proposals submitted and not permit withdrawal for a period of 60 days subsequent to the deadline for receiving proposals without the written consent of the HACSJ Procurement Compliance Officer. 1.6 The HACSJ reserves the right to negotiate the fees proposed by the proposer entity. 1.7 The HACSJ reserves the right to reject and not consider any proposal that does not meet the requirements of this RFP, including, but not necessarily limited to, incomplete proposals and/or proposals offering alternate or non-requested services. 1.8 The HACSJ shall have no obligation to compensate any proposer for any costs incurred in responding to this RFP. 1.9 The HACSJ shall reserve the right to at any time during the RFP or contract process prohibit any further participation by a proposer or reject any proposal submitted that does not conform to any of the requirements detailed herein. 2.0 SCOPE OF SERVICES: The Authority is seeking Proposals from qualified licensed and insured entities to provide the following annual audit services (and the work plan or program description submitted under Tab #4 shall fully detail how the proposer intends to provide such): 2.1 General Requirements: Any audit that is performed by award of this RFP shall be performed in accordance with generally accepted auditing standards, and will additionally require compliance testing and a study of internal accounting controls. The successful proposer will be required to certify that each and every audit is performed in accordance with all applicable federal and state laws and regulations, and in accordance with Generally Accepted Accounting Principles (GAAP) The Authority was last audited for the fiscal year end September 30, The programs the Authority will require the successful proposer to audit Page 3 of 20

4 for the fiscal years ending September 30, 2012 (FY2012), September 30, 2013 (FY2013), September 30, 2014 (FY2014), September 30, 2015 (FY2015), and September 30, 2016 (FY2016): A conventional-owned Low-Rent Housing Program, with 1075 units; Tenant Based Housing Choice Voucher Program with 4,956 units; Project Based Multi-Family Housing Program with 110 units for seniors; Rural Development Farm Worker Program with 31 units; Non-Aided Housing Program, with 76 units, which is financed by private commercial loans and dwelling rentals. This program will be required to be included with the organization-wide audit, together with other non-federally funded programs carried by the AUTHORITY; Capital Fund Programs (CFP), including numbers 259,260,261,262,263,264,265,266; Capital Fund Recovery Grant; ARRA (American Recovery and Reinvestment Act) Migrant Farm Labor Housing, 287 units; Community Development Block Grants (CDBG) (none currently, but may be added); Replacement Housing Funds (none currently, but may be added); One (1) Public Housing FSS Grant; Two (2) Service Coordinator Grants; One (1) Resident & Opportunities Supportive Services (ROSS) Grants; One (1) Housing Choice Voucher ( HCVP ) Family Selfsufficiency ( FSS ) Program Grant; Villa Real, a non-profit subsidiary of the Housing Authority, and Any other programs managed and/or operated by the Housing Authority. Page 4 of 20

5 2.1.3 The FY2012 audit will be required to be performed in a timely manner that allows sufficient time to meet HUD deadlines. Audit deadlines include: Field work completion (May 15, 2013); Draft report submission (June 1, 2013); Final audited report submission to REAC (June 15, 2013); Final audited report to CCR (June 15, 2013); Final audit report presented to the Housing Authority s Board of Commissioners The Authority and the successful proposer will be required to maintain a detailed audit status report. The audit status report will be used to, if necessary, identify the party or parties responsible for the successful proposer not meeting the objectives outlined within the preceding Sections Once completed, the successful proposer will be required to submit to the Authority one unbound, one (1) electronic copy, and fifteen (15) bound copies of the Single Audit Report Once completed, the successful proposer will be required to submit to the Authority one (1) unbound, one (1) electronic copy, and fifteen (15) bound copies of the audit for the State funded Migrant Programs. This report will be forwarded by the AUTHORITY to the State of California Once completed, the successful proposer will be required to submit to the Authority one (1) unbound, one (1) electronic copy, and ten (10) bound copies of the audit for Villa Real, Inc. 2.2 The Auditor's Responsibilities: as defined within OMB Circular A-133 at General Responsibility, A (a): The audit shall be conducted in accordance with GAGAS. The audit shall cover the entire operations of the Authority Financial Statements, A (b): The auditor shall determine whether the Authority's financial statements are fairly presented in all material respects in conformity with generally accepted accounting principles (GAAP). The auditor shall also determine whether the schedule of expenditure of Federal awards is presented fairly in all material respects in relation to the Authority's financial statements taken as a whole. Page 5 of 20

6 2.2.3 Internal Control, A (c): In addition to the requirements of GAGAS, the auditor shall perform procedures to obtain an understanding of the HACSJ's internal control systems Staffing for this assignment shall remain constant over the term of this contract. At least 20% of the audit work and oversight shall be performed by the Audit Manager or Partner Compliance, A (d): In addition to the requirements of GAGAS, the auditor shall determine whether the Authority has complied with laws, regulations, and the provisions of contracts or grant agreements that may have a direct and material impact on each of its major programs The auditor will prepare the Bureau of Census Data Collection Form (Form SF- SAC) to accompany the Single Audit Report (not bound with report) The auditor will be expected to provide a management letter to the Board of Commissioners and the Executive Director (ED) on the non-reportable conditions and immaterial instances of noncompliance. This letter shall also include general recommendations on observations made during the audit that could be helpful to the financial management and operations of the Authority. The auditor will appear before the Board of Commissioners and ED to present each annual audit report Audit Follow-up, A (b): The auditor shall follow-up on prior audit findings; perform procedures to assess the reasonableness of the summary of schedule of prior audit findings prepared by the Authority Data Collection Form, A (b) (3): The auditor shall complete and sign specified sections of the data collection form Audit Reporting, A : The auditor's report shall include: An opinion on financial statements and schedule of expenditure of Federal awards; A report on Internal Control; Report on compliance with the regulatory arm of the funding agency; A schedule of findings and questioned costs Audit Working Papers, A : Retention of Working Papers: The auditor shall retain working papers for a minimum of 3 years after the date of issuance of the auditor's report to the Authority Access to Working Papers: Audit working papers shall be made available upon request to the cognizant or oversight agency for Page 6 of 20

7 audit or its designee. Access to working papers includes the right of Federal agencies to obtain copies of working papers, as is reasonable and necessary Determine the Authority s major programs, A Adherence to standards set forth by generally accepted auditing standards (GAAS) and the generally accepted government auditing standards (GAGAS) Prepare the Audit Engagement Letter in accordance with AICPA standards. This letter will be a formal contract between the auditor and the Authority. It confirms the auditor's acceptance of the appointment and documents the agreed-upon scope and terms of the engagement and shall become a part of the ensuing contract between the Authority and the selected auditor. The basic elements of the Audit Engagement Letter shall be: Names of the parties to the contract Audit schedule Reporting package and its format Auditor/Authority relationship regarding changes in the kind or amount of work required, and access to and ownership of audit products, including: At any time the Authority may, by written notice, make changes in or additions to work or services within the general scope of the agreement. If such changes are made, an equitable adjustment will be made in the cost of the audit using the rates specified in the agreement If the auditor believes that a change in or addition to work is beyond the general scope of the agreement, it must notify the Authority in writing within 10 days of being notified to begin such work. The final administrative authority in settling such disputes shall rest with the Authority Audit Work Papers: The work papers prepared by the auditor during the audit are its own property. These documents shall be retained for a period of at least 3 years after issuance of the Report. Copies of these work papers, if requested by the Authority, HUD or any other governmental agency having jurisdiction to request such (i.e. Office of Inspector General), are to be made available to the requesting party within 10 days of receipt of such request. All reports rendered to the Authority by the auditor are the exclusive property of the Authority and subject to its use and control, according to applicable laws and regulations. Page 7 of 20

8 The objective of the audit is the expression of an opinion on the financial statements The Management of the Authority is responsible for the PHA's financial statements Management is responsible for establishing and maintaining effective internal control systems Management is responsible for identifying and ensuring that the Authority complies with applicable laws and regulations Management is responsible for making all financial records and related information available to the auditor At the conclusion of the audit, the Management will provide the auditor with a letter that confirms certain representations made during the audit (Management Representation Letter) The auditor is responsible for conducting the audit in accordance with generally accepted auditing standards (GAAS) and/or generally accepted governmental auditing standards (GAGAS) The audit includes obtaining an understanding of the Authority's internal controls sufficient to plan the audit and to determine the nature, timing and extent of audit procedures to be performed. An audit is not designed to provide assurance on internal control or to identify reportable conditions. However, the auditor is responsible for ensuring that the audit committee is aware of any reportable conditions that come to its attention Management is responsible for adjusting the financial statements to correct material misstatements and for affirming to the auditor in the representation letter that the effects of any uncorrected misstatements aggregated by the auditor are immaterial, both individually and in the aggregate Arrangements regarding the conduct of the engagement (i.e., timing; client assistance; availability of documents and use of specialists or internal auditors; etc.) Arrangements involving a predecessor auditor, fees, expense reimbursement and payment schedule Any limitation of or other arrangements regarding the liability of the auditor or the Authority. Page 8 of 20

9 Any other conditions under which third parties may be granted access to the auditor work papers Provision of services relating to regulatory requirements or other non-audit services All proposed work shall include any required assistance and verification that the Contractor must provide to assist and ensure the appropriate on-time submission of the audited Financial Data Schedule to HUD The Auditor will complete a Statement and Certificate of Actual Fund Program Costs at the close of each Capital Fund grant The Auditor will complete a Debt Service Coverage Ratio Certification for the Franco Building bond. 2.2 The HACSJ's Responsibilities: As defined within OMB Circular A-133: Provide Federal program-related information: Federal awards received and expended including the CFDA title and number; award number and year; name of the Federal agency; and the name of the pass-through entity; per A (a) Maintain internal control over Federal program that provides reasonable assurance that the Authority is managing Federal awards in compliance with laws, regulations and the provisions of contracts or grant agreements that could have a material effect on each of its Federal programs; per A (b) Comply with laws, regulations, and the provisions of contracts or grant agreements related to each of its Federal programs; per A (c) Prepare the appropriate financial statements, including the schedule of expenditure of Federal awards in accordance with A ; per A (d) Ensure that the required audits were properly performed and submitted timely; per A (e) Follow up and take corrective action on audit findings, including preparation of a summary schedule of prior audit findings and a corrective action plan in accordance with OMB Circular A (b) & (c), [A (f)] Submit the reporting package to OMB-designated Federal Clearinghouse and to its Cognizant Agency, including the Data Collection Form, (A ). Page 9 of 20

10 3.0 PROPOSAL FORMAT: REQUEST FOR PROPOSALS (RFP) # : AUDIT SERVICES Per 24 CFR Part 85.20: Financial Reporting: Disclose accurate, current and complete financial results of HUD assisted Programs Accounting Records: Identify the source and application of funds provided for HUD assisted activities Internal Controls: Maintain effective controls and accountability for all assets, including accounting controls and management activities Budget Controls: Prepare separate budget for each HUDassisted program, based on HUD prescribed categories, and assure that expenditures do not exceed the approved budget Allowable Cost: Ensure that funds are expended in accordance with program requirements, based on OMB Circular A-87 or as amended Source Documentation: Main source documents and files that support the financial transactions recorded in the books, providing an adequate audit trail Per Statement on Auditing Standards No. 85: Prepare Management Representation Letter. This is the Authority s written representations on financial statements under examination by the auditor. In accordance with generally accepted auditing standards (GAAS), the auditor requests this document from the Authority prior to the conclusion of the audit Per 24 CFR : Electronically submit the audited financial data to HUD's Real Estate Assessment Center (REAC) within 9 months after its fiscal year-end date. 3.1 Tabbed Proposal Submittal: The HACSJ intends to retain the successful proposer pursuant to a Best Value basis, not a Low Bid basis. Therefore, so that the HACSJ can properly evaluate the offers received, all proposals submitted in response to this RFP must be formatted in accordance with the sequence noted following. Each category must be separated by numbered index dividers (which number extends so that each tab can be located without opening the proposal) and labeled with the corresponding tab reference also noted below. None of the proposed services may conflict with any requirement the HACSJ has published herein or has issued by addendum. Page 10 of 20

11 3.1.1 Tab 1, Form of Proposal: This form is Attachment A of this RFP document. This one-page form must be fully completed, executed where provided and submitted under this tab as a part of the proposal submittal Tab 2, Form HUD-5369-C, Certifications and Representations of Offerors: This form is Attachment B of this RFP document. This form must be fully completed, executed where provided, and submitted under this tab as a part of the proposal submittal Tab 3, Profile of Firm Form: The Profile of Firm Form is Attachment C of this RFP document. This two-page form must be fully completed, executed, and submitted under this tab as a part of the proposal submittal. NOTE: As instructed, place the required resumes under Tab # Tab 4, Proposed Services: The proposer shall, at a minimum, clearly detail the information submitted under this tab: A complete description of the services that the proposer intends to provide How staff are retained, screened, trained and monitored; The proposed quality control program; and An explanation and copies of forms that will be used and reports that will be submitted Proposer s qualifications to perform the work, including experience with federally-funded residential developments; An Organizational Chart, identifying a Team Leader and individuals who will be working on the project, including appropriate licenses, resumes, and previous experience with references; Demonstration of current capacity to carry out the work, including a willingness and ability to meet the HACSJ's entitlements process schedule Tab 5, Managerial/ Financial Viability: The proposer entity must submit under this tab a concise description of its managerial and financial capacity to deliver the proposed services, including brief professional resumes for the persons identified in areas five (5) and six (6) of the Profile of Firm Form Tab 6, Client Information: The proposer shall submit a listing of at least six former or current clients for whom the proposer has performed services similar or the same as those being proposed. The list shall, at a minimum, include: The clients name; The clients contact name; The clients telephone number; Page 11 of 20

12 A brief description and scope of the service(s) and the dates the services were provided In addition, briefly describe your ownership and development position for the last three (3) residential developments Tab 7, Subcontractor/Joint Venture Information (Optional Item): The proposer shall identify whether or not he/she intends to use any subcontractors for this job, if awarded, and/or if the proposal is a joint venture with another firm. Please remember that all information required from the proposer under the proceeding tabs must also be included for any major subcontractors (10% or more) or from any joint venture Tab 8, Section 3 Business Preference Documentation (Optional Item): For any proposer claiming a Section 3 Business Preference, he/she shall under this tab include the fully completed and executed Section 3 Business Preference Certification Form attached hereto as Attachment D and any documentation required by that form. If the proposer does not claim any Section 3 preference, please place hereunder a statement that "NO SECTION 3 BEING CLAIMED." Tab 9, Other Information (Optional Item): The proposer may include hereunder any other general information that the proposer believes is appropriate to assist the HACSJ in its evaluation. If no pertinent information is to be placed under this tab, please place hereunder a statement that "NO INFORMATION IS BEING PLACED HEREUNDER." Tab 10, HACSJ Form of Non-Collusive Affidavit: This form is Attachment H of this RFP document. This one-page form must be fully completed, executed where provided, notarized, and submitted under this tab as a part of the proposal submittal NOTE: If no pertinent information is to be placed under any of the tabs (especially the "Optional" tabs), please place thereunder a statement such as "NO INFORMATION IS BEING PLACED UNDER THIS TAB" or "THIS TAB LEFT INTENTIONALLY BLANK." 3.2 Fees Submittal: Proposed fees will only be submitted by the proposer and received by HACSJ on a single separate cover letter included with the submittal package but not physically attached to any of the three tabbed proposals. Do not submit, enter or refer to any costs within any of the documents submitted under any of the tabs of the proposal submittal any proposer who does so may be rejected without further consideration. Unless otherwise stated, all proposed fees are all-inclusive of all related costs that the Contractor will incur to provide the noted service or installation, including, but not limited to: employee wages and costs; materials; supplies; tools; equipment; licensing; and insurance, travel, lodging, etc Billable Rates: Proposers shall submit a separate rate sheet identifying the billable hourly rates for each type of service expected to be needed. This sheet shall not be physically attached to nor presented in any of the three tabbed proposal submittals. Proposer acknowledges that any quantities Page 12 of 20

13 discussed are for calculating purposes only, as the HACSJ does not guarantee any minimum or maximum amount of work as a result of any award ensuing from this RFP Proposed Not-To-Exceed ( NTE ) Total Costs: Proposers shall submit proposed NTE total costs for each Phase, on the separate Form of Price Submittal (Attachment F to the RFP package). The Form of Price Submittal follows the format outlined below: Phase Service Description NTE Price 1 Estimated Total Fees for Contract Year One (FY 2012) Max. Point Value $ 3 Pts TOTAL Estimated Total Fees for Optional Contract Year Two (FY 2013) Estimated Total Fees for Optional Contract Year Two (FY 2014) Estimated Total Fees for Optional Contract Year Two (FY 2015) Estimated Total Fees for Optional Contract Year Two (FY 2016) ESTIMATED CHARGES FOR CONTRACT COMPLETION (TOTAL OF MAXIMUM POSSIBLE FIVE-YEAR CONTRACT TERM) $ 3 Pts. $ 3 Pts. $ 3 Pts. $ 3 Pts. $ 15 Pts Point Awards for Pricing: Points for pricing shall only be awarded for NTE total costs for each Phase as entered on the separate Form of Price Submittal (Attachment F to the RFP package). Points will be awarded using the Proposed Costs vs. Proposed Costs method, whereby 100% of the points assigned in this evaluation criteria area are calculated based upon how the proposed fees from each proposer compare with such costs submitted by each of the other proposers. The lowest price receives the maximum number of points, and the remaining price proposals receive a percentage of the total maximum points based on a factor calculated by dividing the lowest price amongst all proposals received by the price being evaluated. For example: Proposer Proposed Fees Factor Calculation Possible Points Points Calculation Points Awarded Proposer A $ /900= x Proposer B $1, /1000= x Proposer C $1, /1800= x Page 13 of 20

14 3.3 Proposal Submission: All proposals must be submitted, time-stamped, and received in the HACSJ Business Office by no later than the submittal deadline stated or within any ensuing addendum. A total of one (1) cover letter identifying pricing/fees but not physically attached to any of the three tabbed proposals, and one (1) original signature copy (marked "ORIGINAL") plus two (2) exact copies of the proposal submittals, each complete with cover and extending tabs, shall be placed, unfolded, in a sealed package and addressed to: HACSJ Business Office 421 S. El Dorado St., Suite B Stockton, CA NOTE: The package exterior must clearly denote the relevant RFP number and must have the proposer s name and return address. Proposals submitted after the published deadline will not be accepted Submission Conditions: DO NOT FOLD OR MAKE ANY ADDITIONAL MARKS, NOTATIONS OR REQUIREMENTS ON THE DOCUMENTS TO BE SUBMITTED! Proposers are not allowed to change any requirements or forms contained herein, either by making or entering on these documents or the documents submitted any revisions or additions. If any such additional marks, notations or requirements are entered on any of the documents that are submitted to the HACSJ by the proposer, that proposal may be invalidated. If, after accepting such a proposal, the HACSJ decides that any such entry has not changed the intent of the proposal, the HACSJ may accept the proposal and the proposal shall be considered by the HACSJ as if those additional marks, notations or requirements were not entered Submission Responsibilities: It shall be the responsibility of each proposer to be aware of and to abide by all dates, times, conditions, requirements and specifications set forth in all applicable documents issued by the HACSJ, including the RFP document, the documents listed within the following titled Recap of Attachments, and any addenda and required attachments submitted by the proposer. By virtue of completing, signing and submitting the completed documents, the proposer is stating his/her agreement to comply with the all conditions and requirements set forth in those documents. Written notice from the proposer not authorized in writing by the HACSJ to exclude any of the HACSJ requirements contained within the documents may cause the proposer to not be considered for award. 3.4 Proposer's Responsibilities--Contact With the HACSJ: It is the responsibility of the proposer to address all communication and correspondence pertaining to this RFP process to the HACSJ Business Office only. Proposers may not make inquiry or communicate with any other HACSJ staff member or official (including members of the Board of Commissioners) pertaining to this RFP. Failure to abide by this requirement may be cause for the HACSJ to not consider a proposal submittal received from any proposer who may has not abided by this directive. 3.5 Pre-Proposal Conference: No pre-proposal conference has been scheduled for this RFP. Page 14 of 20

15 3.6 Recap of Attachments: It is the responsibility of each proposer to verify that he/she has downloaded the following attachments pertaining to this RFP: Attachment 0.0: HACSJ Request For Proposals Notice and Table of Contents; Attachment 1.0: This HACSJ RFP Document & Statement of Work; Attachment A: HACSJ Form of Proposal; Attachment B: Form HUD-5369-C, Certifications and Representations of Offerors, Non-Construction Contract; Attachment C: HACSJ Profile of Firm form; Attachment D: HACSJ Section 3 forms, including explanation; Attachment E1: HACSJ Sample Contract (Please note that this document is being given as a sample only. The HACSJ reserves the right to revise any clause and/or to include with the ensuing contract any additional clauses that the HACSJ feels it is in its best interests to do so); Attachment E2: Form HUD-5370-C1, General Conditions for Non-Construction Contracts; Attachment F1: Form HUD-5369-B, Instructions to Offerors, Non- Construction; Attachment F2: HACSJ Instructions To Proposers & Contractors ( ITPC ); Attachment G: Insurance Requirements for Consultants; Attachment H: HACSJ Form of Non-Collusive Affidavit; Attachment I HACSJ Form of Price Submittal (Include one copy with submittal but do not physically attach); Any and all Addendums pertaining to this RFP solicitation. Page 15 of 20

16 4.0 PROPOSAL EVALUATION: Criteria and Method. The HACSJ will evaluate each proposal submitted in accordance with the RFP procedures shown in the HUD Procurement Handbook No REV 2 and within the HACSJ Procurement Policy. The following factors will be utilized by the evaluation committee appointed by the HACSJ to evaluate each proposal submittal received; award of points for each listed factor will be based upon the documentation that the proposer submits within his/her proposal submittal. NO. MAX POINT VALUE CRITERION DESCRIPTION 1 15 points Proposed Cost: The costs being proposed to charge the HACSJ 2 20 points Experience: The proposer s DEMONSTRATED EXPERIENCE in performing similar work and the proposer s DEMONSTRATED SUCCESSFUL PAST PERFORMANCE (including meeting costs, schedules and performance requirements) of contract work substantially similar to that required by this solicitation as verified by reference checks or other means points Ability: The proposer s TECHNICAL CAPABILITIES (in terms of personnel, equipment and materials) and the MANAGEMENT PLAN (including staffing of key positions, method of assigning work and procedures for maintaining level of service, etc.) points Specialized Knowledge: The proposer s DEMONSTRATED UNDERSTANDING of the REQUIREMENTS points Specialized Knowledge: The APPROPRIATENESS of the TECHNICAL APPROACH (including labor categories, estimated hours and skill mix, and proposed assistance with HUD reports, i.e. REAC/FDS) and the QUALITY OF THE WORK PLAN points Specialized Knowledge: The proposer s TIMELINE for MEETING DEADLINES and the COMPLETION of reports points Specialized Knowledge: The OVERALL QUALITY AND PROFESSIONAL APPEARANCE OF THE PROPOSAL SUBMITTED, based upon the opinion of the evaluators points SECTION 3 BUSINESS PREFERENCE PARTICIPATION: A firm may qualify for Section 3 status as detailed within Attachment D (NOTE: A max of 25 points awarded). Priority I: As detailed on page 5 of Attachment D. Priority II: As detailed on page 5 of Attachment D. Priority III: As detailed on page 5 of Attachment D. Priority IV: As detailed on page 5 of Attachment D. Priority V/VI: As detailed on page 5 of Attachment D. TOTAL 125 points Maximum Points (Before Section 3 Preferences) Page 16 of 20

17 4.1 Section-3 Preference Evaluation Factor: The following factors will be utilized by the staff member assigned by the HACSJ to evaluate each proposal submittal received: NO. MAX POINT VALUE FACTOR TYPE 8 Objective FACTOR DESCRIPTION SECTION 3 BUSINESS PREFERENCE PARTICIPATION: A firm may qualify for Section 3 status as detailed within Attachment D (NOTE: A max of 25 points awarded). (8a) 5 Priority I: As detailed on page 5 of Attachment D. (8b) 5 Priority II: As detailed on page 5 of Attachment D. (8c) 5 Priority III: As detailed on page 5 of Attachment D. (8d) 5 Priority IV: As detailed on page 5 of Attachment D. (8e) 5 Priority V/VI: As detailed on page 5 of Attachment D. 25 Maximum Section 3 Preference Points (Additional Points) 125 Total Possible RFP Points 4.2 Evaluation Method: 5.0 CONTRACT AWARD: Initial Evaluation: Each proposal received will first be evaluated for responsiveness (i.e. meets the minimum of the requirements). The HACSJ shall select a minimum of a three-person panel to evaluate each of the proposals submitted in response to this RFP Restrictions: All persons having familial (including in-laws) and/or employment relationships (past or current) with principals and/or employees of a proposer entity will be excluded from participation on the HACSJ evaluation panel. Similarly, all persons having ownership interest in and/or contract with a proposer entity will be excluded from participation on the HACSJ evaluation panel. 5.1 If a contract is awarded pursuant to this RFP, the procedures shown in the HUD Procurement Handbook No REV 2 and within the HACSJ Procurement Policy will be followed Upon final completion of the proposal evaluation process, the evaluation panel will forward the completed evaluations to the HACSJ. The HACSJ PA will formulate and forward to the HACSJ ED for consideration and approval a written award recommendation. The HACSJ ED may choose to approve the award or the HACSJ ED may approve staff to take the award recommendation to the HACSJ Board of Commissioners at a scheduled board meeting for approval (typically for contracts with a total value greater than $100,000). If so, the HACSJ Board will then make its determination whether or not to follow the panel s recommendation. If the recommendation is followed and the top-rated proposer is approved for award, all proposers will receive an HACSJ Notice of Results of Evaluation. Also, it may be necessary for the Page 17 of 20

18 HACSJ to obtain permission from HUD to complete any award over five (5) years Price shall be considered, but is not the sole determining factor. At the HACSJ's option, contract price negotiations may be conducted prior to or after Board approval The HACSJ may cancel this Request for Proposal or reject proposals at any time prior to an award, and is not required to furnish a statement of the reasons why a particular proposal was not deemed to be the most advantageous. Should the HACSJ determine in writing and in its sole discretion that only one respondent is fully qualified, or that one respondent is clearly more highly qualified than the others under consideration, a contract may be negotiated and awarded to that respondent. The award document will be a contract incorporating by reference all the requirements, terms and conditions of the solicitation and the respondent s proposal as negotiated. 5.2 Contract Conditions: The following provisions are considered mandatory conditions of any contract award made by HACSJ pursuant to this RFP: Contract Form: The HACSJ will not execute a contract on the successful proposer's form. Contracts will only be executed on a form supplied by the HACSJ (please see Sample Contract, Attachment E1). By submitting a proposal the successful proposer agrees to do so. Please note that the HACSJ reserves the right to amend this form as the HACSJ deems necessary. However, the HACSJ will consider any contract clauses that the proposer wishes to include. The failure of the HACSJ to include such clauses does not give the successful proposer the right to refuse to execute the HACSJ's contract form. It is the responsibility of each prospective proposer to notify the HACSJ in writing prior to submitting a proposal, of any contract clause that he/she is not willing to include in the final executed contract and abide by. The HACSJ will consider and respond to such written correspondence, and if the prospective proposer is not willing to abide by the HACSJ's response (decision), then that prospective proposer shall be deemed ineligible to submit a proposal Assignment of Personnel: The HACSJ shall retain the right to demand and receive a change in personnel assigned to the work if the HACSJ believes that such change is in the best interest of the HACSJ and the completion of the contracted work. Contractor shall select and employ the replacement personnel Unauthorized Sub-Contracting Prohibited: The successful proposer shall not assign any right, nor delegate any duty for the work proposed pursuant to this RFP (including, but not limited to, selling or transferring the contract) without the prior written consent of the HACSJ Executive Director ( ED ). Any purported assignment of interest or delegation of duty, without the prior written consent of the HACSJ ED shall be void. It may result in the cancellation of the contract with the HACSJ, or may result in the full or partial forfeiture of funds paid to the successful proposer as a result of the proposed contract; either as determined by the HACSJ ED. Page 18 of 20

19 5.3 Contract Period: As this RFP is for services pertaining to a redevelopment project still in the planning stages, it is difficult to determine an exact contract period at this time; however the HACSJ's anticipates work pertaining to this RFP will take 3-5 years to complete. However, the HACSJ shall retain the right to contract with the successful proposer for any amount of time that, in the opinion of the HACSJ, it takes to conclude any matter that the successful proposer may begin work on within the HUD-permissible maximum five-year contract period. 5.4 Licensing and Insurance Requirements: Prior to award (but not prior to submission of the proposal) the successful proposer will be required to provide: The contractor shall provide to the HACSJ copies of any required current City, State and/or Federal licenses. Failure to maintain these licenses in a current status during the term(s) of this contract shall constitute a material breach thereof If applicable, a copy of the proposer's license issued by the State of California licensing HACSJ allowing the proposer to provide the services detailed herein Proof of insurance coverage as outlined in the HACSJ document Insurance Requirements for Consultants The requested related information shall also be entered where provided for on the Profile of Firm Form. DO NOT ATTACH COPIES TO THE PROPOSAL SUBMITTED. The HACSJ will garner the necessary certificates from the successful proposer prior to contract execution. 5.5 Right to Negotiate Final Fees: The HACSJ shall retain the right to negotiate the amount of fees that are paid to the successful proposer. Such negotiations may begin after the HACSJ has chosen a top-rated proposer. If such negotiations are not, in the opinion of the HACSJ ED, successfully concluded, the HACSJ shall retain the right to end such negotiations and begin negotiations with the next-highest-rated proposer. The HACSJ shall also retain the right to negotiate with and make an award to more than one proposer, as long as such negotiation(s) and/or award(s) are addressed in the above manner (i.e. top-rated first, then next-rated following until a successful negotiation is reached) Requirements Contract/Task Order Basis: The HACSJ does not at this time know the full extent of the work that the HACSJ will need the successful proposer to perform. The quantities listed in the cost proposal area shall be considered to be calculation factors only. The HACSJ will evaluate each proposer's cost proposal on an equitable basis Therefore, the proposed contract shall be considered to be a requirements contract (RC) with work ordered on a task order basis. This means that the HACSJ will order work on an as-needed basis, and the successful proposer will provide the work pursuant to the unit costs proposed and/or negotiated. Page 19 of 20

20 The HACSJ reserves the right to order any quantity of work pursuant to the proposed contract. This means that there shall be no minimum or maximum amount of work that will be ordered, either on an individual order basis or in total. However, any such work ordered will be in conformance with an HACSJ Boardapproved budget, a specific not-to-exceed (NTE) amount approved by the HACSJ Board of Commissioners and shall not exceed the NTE amount listed on the current contract. 5.6 Contract Service Standards: All work performed pursuant to this RFP must conform and comply with all applicable local, state and federal laws. 6.0 HACSJ PROPERTY LISTING: For informational purposes, listed below are a number of developments and facilities that the HACSJ owns and operates within the County of San Joaquin. The HACSJ does not guarantee that it will retain the successful proposer to do work for or within any minimum of maximum number of these developments/facilities. This listing is provided as an informational item only so that prospective proposers may view the sites to gain an understanding as to what types and quantity of work the HACSJ may need at some point during the contract period. NO. PROPERTY/ADDRESS UNITS TYPE 1 Sierra Vista Development, 2436 S. Belleview, Stockton, CA PHA 394 Family 2 Conway Homes Development, 741 W. Flint Ave., Stockton, CA PHA 436 Family 3 Tracy Homes Developments (Multiple Sites) PHA 175 Family 4 Buthmann Units, 2525 Buthmann, Tracy, CA PHA 20 Senior 5 Mokelumne Manor, N. Manor Drive, Thornton, CA PHA 50 Family 6 Artesi II Migrant Center, 777 W. Mathews Road, French Camp, CA MC 98 Migrant 7 Artesi III Migrant Center, 333 W. Mathews Road, French Camp, CA MC 98 Migrant 8 Alberta Jackson Admin Building, 448 S. Center St, Stockton, CA AHP Administrative Offices 9 Harney Lane Migrant Center, E. Harney Laney, Lodi, CA MC 98 Migrant 10 Franco Center Apartments, 144 Mun Kwok Lane, Stockton, CA AHP 110 Senior W Park Street Apartments, 32 W. Park St., Stockton, CA AHP 12 Family 12 Washington St. Apartments, 719 S. Washington St., Lodi, CA AHP 6 Family 13 Sartini Manor, N. Manor Drive, Thornton, CA FHA 31 Family 14 Claremont Manor, 347 E. Flora St., Stockton, CA AHP 50 Senior PHA=Public Housing Authority, or Federally subsidized housing. AHP=Affordable Housing Program, or housing that is not Federally subsidized. MC=Migrant Farm Labor Centers FHA=Farmer s Home Administration Page 20 of 20